We’re a day too late to initiate a ‘mechanical’ short from the red line (p=86.74), but getting long if and when BABA falls to the 84.00 target could prove just as rewarding. Let’s plan on buying four July 18 87.50 calls if the stock gets within 0.06 of the target (i.e., 84.06 or lower). I estimate that the calls would be a good buy for around 1.05 if the target is reached by Friday, but you can sharpen that estimate by monitoring the bid/asked for the calls closely as BABA nears the target. Stop yourself out of them if they trade for 0.20 less than the best price reported in the chat room. _______ UPDATE (June 24, 12:52 a.m. EDT): Cancel the bid, since BABA now looks like it will fall to at least 82.78 over the near term. Instead, you can short it mechanically using a pattern like the one shown.
